- CFPB faces mass layoffs; court temporarily blocks Trump-led termination plans.
- SEC downsizes; 500 staff exit, crypto enforcement actions dropped or deferred.
- Warren warns of risks as DOGE team dismantles financial oversight functions.
Senator Elizabeth Warren has voiced concern over major regulatory cuts under the Trump administration, warning that ongoing staff reductions at major regulatory bodies may increase the risk of unchecked financial misconduct.
Her comments follow a series of restructuring moves involving agencies such as the Consumer Financial Protection Bureau (CFPB) and the Securities and Exchange Commission (SEC), which have seen major reductions in enforcement activity and personnel.
What’s Happening at the CFPB?
On Thursday, the CFPB created following the 2008 financial crisis, became the focus of potential agency-wide staff cuts. According to a legal filing from the union representing its employees, around 1,500 of the agency’s 1,700 staff face potential termination amid broader administration efforts to scale back regulatory functions.
However, a federal judge in Washington D.C. issued a decision Friday temporarily blocking these specific layoffs. The court’s review will determine if the proposed terminations violate an existing injunction that prevents the agency from being shut down entirely.
Related: D.O.G.E. Saves U.S. Taxpayers $84B in First Weeks of Trump’s Presidency, But Critics Slam Cost-Cutting Moves
How Are Cuts Affecting the SEC and Crypto?
The Securities and Exchange Commission is also reducing its workforce. About 500 SEC employees accepted buyout packages or deferred resignation options.
As a result, several high-profile enforcement actions, particularly impacting the crypto market, have either been dropped or postponed. Additionally, rules introduced during the Biden administration have been deferred or removed.
Who Is Reportedly Driving These Changes?
Warren, a key figure in creating the CFPB, stated that these widespread regulatory rollbacks create a risky environment for financial markets. She pointed specifically to what she described as the systematic removal of financial oversight.
The Trump administration’s restructuring efforts are reportedly led partly by Elon Musk’s Department of Government Efficiency (DOGE) and Office of Management and Budget chief Russ Vought.
Related: Donald Trump Pushes Rate Cuts as Crypto Market Holds Steady at $2.79T
Actions attributed to the DOGE team include suspending the CFPB’s supervisory functions over financial institutions and moving to close its Washington D.C. headquarters. These actions face legal scrutiny, as lawsuits contest access to bureau systems and staff dismissals.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
